The rising demand for enhanced protection in electricity distribution systems makes the deployment of advanced LV and MV switchgear imperative. Besides this, the demand for switchgear is also expected to increase in response to the rapid urbanization and infrastructural development witnessed worldwide. With governments of emerging nations such as Indonesia, India, and China increasingly investing in rural development and urbanization, the construction of electricity transmission and distribution networks and upgrades on existing ones are on the cards. This will stimulate the demand for LV and MV switchgear in the short term.

Across several nations worldwide, obsolete transmission and distribution networks have emerged as a major concern. Policy makers are thus compelled to focus on renewing the old transmission networks for better performance. This in turn boosts opportunities for the LV and MV switchgear market.

Advent of Smart Grid Technology to Benefit the Market

The accelerating trend of electrification, along with the advent of smart grid technology in emerging and developed countries, is expected to drive the global LV and MV switchgear market. The global smart grid market is projected to soar at a marked CAGR of 18.2% during the forecast period between 2013 and 2019.

Growing Investment in Infrastructure to Boost Sales of LV and MV Switchgear

Nevertheless, countries located in the Asian sub-continent and Africa will create new opportunities for companies to explore in the near future. The increasing investment in infrastructural and industrial development in these countries will accelerate the demand for LV and MV switchgear. The sale of LV and MV switchgear is also expected to increase due to the rising demand for renewable energy in developed economies.

Asia Pacific Emerges as Leading Market for LV and MV Switchgear

The lack of adequate electrification has been inhibiting the growth of the industrial sector across emerging economies. To counter the situation, governments in India and China have adopted several approaches to improve grid connectivity in remote locations. A significant portion of the budget for such improvement plans has been allocated to urbanization, thus fuelling the deployment of smart grid technology. This subsequently translates into greater opportunities for sales of LV and MV switchgear in these countries.

Accounting for a dominant share of 41.5% in 2015, Asia Pacific emerged as the leading market for LV and MV switchgear globally in 2015. North America followed APAC in 2015. With countries in North America increasingly focusing on renewable energy to curb carbon emissions, the demand for LV and MV switchgear is expected to remain high through the forecast period. Based on application, the power and utilities sectors accounted for the leading share in the global market.

The global LV and MV switchgear market stood at US$56.23 bn in 2015. The market is expected to reach US$98.80 bn by the end of 2024. This translates to a CAGR of 6.8% by value between 2016 and 2024. By volume, the market is expected to rise at a CAGR of 5.7% during the forecast period to reach 3,874.2 thousand units by 2024.

This review is based on a new report published by Transparency Market Research titled, “Low Voltage (LV) and Medium Voltage (MV) Switchgear Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 - 2024.”